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Rights Offering Example .Suppose a company wants to raise $10 million. The subscription price is $20, and the current stock price is $25. The firm

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Rights Offering Example .Suppose a company wants to raise $10 million. The subscription price is $20, and the current stock price is $25. The firm currently has 5,000,000 shares outstanding How many shares must be issued? How many rights will it take to purchase one share? What is the value of a right? 15

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